Stock has been way down the past few weeks. I'm not attributing that just to EA management I know there were other factors affecting the markets in general. But this was once an $80 stock and now it's trading for under $17.
Then there are other things that I just can't understand... Such as how EA can blow $400 million on the "Playfish" deal. That's some serious money they could have invested elsewhere. Some have said that the investment may pay off eventually but the reality of it is that they aren't seeing any real return on that yet.
If they're just in a buying mentality then they're not really creating value for its shareholders that way. You can keep buying companies and make "strategic acquisitions". You can be as big as you want but if you get too big your bubble can burst.
And I've heard they're spending hundreds of millions of dollars on creating this Star Wars MMO which is a very risky proposition. EA has to find a way to lure WOW players and PC gamers alike.
I know EA has incredible franchises under its belt and it just needs to be smart about its business in general. I don't want to see game stocks suffer but watching this one has made me very worried.
40% of EA's marketcap is in cash, and the Playfish deal gets them a serious position in an emerging trend for games. Wait until Zynga ipo's and you will see a lot of interest in this area. Also your comment on the Starwars MMO is contradictory to your comment on luring WOW players. The starwars MMO is getting a lot of buzz. Bioware is working on it and they have been very successful at developing great games thus far for EA. So you want them to stop working on the main game that has potential to lure away WOW players and PC gamers, yet you want them to start working on something to lure away WOW players and PC gamers? WTF?
My main issue with the posters on the board is that most of you guys are whiners with weak arguments who complain to just complain ... Fine I get it, you don't like EA. It doesn't mean you have to make moronic arguments all of the time. Geez.